An Empirical Examination of the R&D Boundaries of the Firm - a Problem-solving Perspective

Shaopeng Huang, Darryl Holden

Research output: Working paperDiscussion paper

Abstract

We consider, both theoretically and empirically, how different organization modes are aligned to govern the efficient solving of technological problems. The data set is a sample from the Chinese consumer electronics industry. Following mainly the problem solving perspective (PSP) within the knowledge based view (KBV), we develop and test several PSP and KBV hypotheses, in conjunction with competing transaction cost economics (TCE) alternatives, in an examination of the determinants of the R&D organization mode. The results show that a firm’s existing knowledge base is the single most important explanatory variable. Problem complexity and decomposability are also found to be important, consistent with the theoretical predictions of the PSP, but it is suggested that these two dimensions need to be treated as separate variables. TCE hypotheses also receive some support, but the estimation results seem more supportive of the PSP and the KBV than the TCE.
LanguageEnglish
Place of PublicationGlasgow
PublisherUniversity of Strathclyde
Pages1-36
Number of pages37
Volume14
Publication statusPublished - 2014

Fingerprint

Problem solving
Boundaries of the firm
Transaction cost economics
Knowledge-based view
Decomposability
Consumer electronics
Prediction
Knowledge base
Electronics industry
Chinese consumers

Keywords

  • problem-solving perspective
  • knowledge-based view
  • firm boundaries

Cite this

Huang, S., & Holden, D. (2014). An Empirical Examination of the R&D Boundaries of the Firm - a Problem-solving Perspective. (05 ed.) (pp. 1-36). Glasgow: University of Strathclyde.
Huang, Shaopeng ; Holden, Darryl. / An Empirical Examination of the R&D Boundaries of the Firm - a Problem-solving Perspective. 05. ed. Glasgow : University of Strathclyde, 2014. pp. 1-36
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Huang, S & Holden, D 2014 'An Empirical Examination of the R&D Boundaries of the Firm - a Problem-solving Perspective' 05 edn, University of Strathclyde, Glasgow, pp. 1-36.

An Empirical Examination of the R&D Boundaries of the Firm - a Problem-solving Perspective. / Huang, Shaopeng; Holden, Darryl.

05. ed. Glasgow : University of Strathclyde, 2014. p. 1-36.

Research output: Working paperDiscussion paper

TY - UNPB

T1 - An Empirical Examination of the R&D Boundaries of the Firm - a Problem-solving Perspective

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PY - 2014

Y1 - 2014

N2 - We consider, both theoretically and empirically, how different organization modes are aligned to govern the efficient solving of technological problems. The data set is a sample from the Chinese consumer electronics industry. Following mainly the problem solving perspective (PSP) within the knowledge based view (KBV), we develop and test several PSP and KBV hypotheses, in conjunction with competing transaction cost economics (TCE) alternatives, in an examination of the determinants of the R&D organization mode. The results show that a firm’s existing knowledge base is the single most important explanatory variable. Problem complexity and decomposability are also found to be important, consistent with the theoretical predictions of the PSP, but it is suggested that these two dimensions need to be treated as separate variables. TCE hypotheses also receive some support, but the estimation results seem more supportive of the PSP and the KBV than the TCE.

AB - We consider, both theoretically and empirically, how different organization modes are aligned to govern the efficient solving of technological problems. The data set is a sample from the Chinese consumer electronics industry. Following mainly the problem solving perspective (PSP) within the knowledge based view (KBV), we develop and test several PSP and KBV hypotheses, in conjunction with competing transaction cost economics (TCE) alternatives, in an examination of the determinants of the R&D organization mode. The results show that a firm’s existing knowledge base is the single most important explanatory variable. Problem complexity and decomposability are also found to be important, consistent with the theoretical predictions of the PSP, but it is suggested that these two dimensions need to be treated as separate variables. TCE hypotheses also receive some support, but the estimation results seem more supportive of the PSP and the KBV than the TCE.

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Huang S, Holden D. An Empirical Examination of the R&D Boundaries of the Firm - a Problem-solving Perspective. 05 ed. Glasgow: University of Strathclyde. 2014, p. 1-36.